The cryptocurrency sector saw a sea of green after the massive interest rate cut by the Federal Reserve.
Bitcoin (BTC) led the gains, breaking through the key resistance point at $63,000 for the first time since August 27.
Reef and First Neiro on ETH and Solar (SXP) in the lead
Most of the big gains occurred among smaller altcoins. Reef (REEF) surged sharply, hitting $0.0048, its highest point since March 12. It was one of the best performing altcoins this month, surging more than 670% from its lows, taking its market cap to over $102 million.
Reef, which stands for Reliable, Scalable, Efficient and Fast, has surged in value a month after it was delisted from its exchange. This suggests that it is likely going through a short downturn, as most of its trading is done on Gate.io and WhiteBIT.
Ethereum’s first token, Nero (NEIRO), was also one of the best performers this month, rising to an all-time high of $0.00098, up over 3,865% from its September low.
Other cryptocurrencies that performed well in this cryptocurrency comeback included Solar (SXP) and Billy (BILLY), which rose by more than 50%.
This price action coincided with the performance of other assets. In the stock market, popular indices such as the Dow Jones and the Nasdaq 100 rose by more than 1%, continuing the bull market that has been ongoing over the past few months.
Fed rate cut
The rally came after the Federal Reserve decided to cut interest rates by 0.50%, in line with most analysts’ expectations. The Fed also hinted that it would make further cuts if the labor market remained weak.
Most crypto analysts believe the ongoing rally has legs. In a note, Ki Young Joo wrote that the crypto rally is still going strong. In another post on X, Joo, the founder of CryptoQuant, pointed out that institutional investors are no longer shorting Bitcoin.
Additionally, Bitcoin ETFs have seen inflows for five consecutive days, suggesting that institutions may have bought the dip. According to Santiment, crypto sentiment continues to rise, which is a positive catalyst for the industry.
As crypto.news reported earlier, the cryptocurrency fear and greed index has moved out of the fear zone and has risen to its highest point in weeks. In most cases, altcoins perform well when the index is in an uptrend.